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Caitríona Redmond: Is Irish Amazon Prime worth it?

Caitríona Redmond: Is Irish Amazon Prime worth it?

  • 19.03.2025 15:17
  • msn.com
  • Keywords: Amazon Launch, Market Expansion

Caitríona Redmond evaluates Amazon's new Irish website, noting its lower Prime subscription cost but limited features like Audible and Kindle benefits compared to the UK service. She suggests switching for casual users but advises those reliant on extra perks to stick with the UK site.

Amazon ServicesAmazon ReportsAMZNsentiment_satisfied

Estimated market influence

Amazon

Amazon

Positivesentiment_satisfied
Analyst rating: Strong buy

Amazon's launch of an Irish website and the associated Prime service has a significant positive influence on their market presence in Ireland. This move is aimed at capturing a larger share of the online retail market, which was previously being serviced through UK-based operations. The financial impact includes a reduction in Prime subscription costs for Irish customers, potentially increasing customer satisfaction and retention. Amazon's expansion into local fulfilment and distribution centers has also created jobs and supports local businesses by showcasing 'Brands of Ireland'. Additionally, the launch could lead to increased revenue for Amazon as they tap into an underserved market segment with tailored services.

ParcelMotel

Negativesentiment_dissatisfied
Analyst rating: N/A

The mention of Parcel Motel's demise coinciding with Brexit indicates a negative influence on their business operations. The shift in shipping and tax policies from the UK likely contributed to their decline, leading to their shutdown. This event reflects poorly on their ability to adapt to changing market conditions and trade policies.

Wolfgang Digital & Amárach Research

Neutralsentiment_neutral
Analyst rating: N/A

This research firm provided data on Amazon's penetration in Ireland, which is crucial for understanding the market context. Their role is more of a supporting one, offering insights rather than directly influencing the events discussed.

BorrowBox

Neutralsentiment_neutral
Analyst rating: N/A

BorrowBox is highlighted as an alternative to Amazon's services but does not have a direct competitive influence on Amazon. It serves as a recommendation for readers seeking free access to books and media, rather than impacting Amazon's market position.

Libraries Ireland

Neutralsentiment_neutral
Analyst rating: N/A

Similar to BorrowBox, Libraries Ireland provides an alternative service but does not directly compete with Amazon. Its role is more about offering a different option for consumers rather than affecting Amazon's business operations.

Context

Analysis of Caitríona Redmond: Is Irish Amazon Prime Worth It?

Key Facts and Data Points:

  • Market Penetration: 78% of Irish adults have ordered from Amazon, rising to over 91% in the 35-44 age range.
  • Revenue Share: Amazon accounts for ~12% of all online revenues in Ireland.
  • Employment: Amazon employs over 6,500 people across six sites in Cork, Dublin, and Drogheda.
  • Export Sales: Irish small and medium-sized businesses recorded €170m in export sales on the platform in 2023.

Cost Comparison:

  • UK Prime Subscription: ~€11/month (~€132/year).
  • Irish Prime Subscription: €6.99/month (~€84/year), a saving of €48 annually.

Benefits of Irish Amazon Prime:

  • Exclusive Deals: Access to special offers, free deliveries, and Prime Video.
  • Local Showcase: "Brands of Ireland" page supports local businesses.
  • Amazon Music: Included in the subscription, benefiting Alexa users.

Drawbacks and Limitations:

  • Reduced Features: Irish Prime is a watered-down version compared to UK Prime.
    • Family Sharing: Not available for .ie customers.
    • Prime Reading: No access to over 3,000 free eBooks.
    • Audible Integration: Requires a separate £ subscription.
    • Kids+: Not available; must use UK accounts.
  • eBook Access: No eBooks on the Irish site; users must switch to UK website for purchases.

Competitive Dynamics:

  • Local Support: Amazon's investment in Ireland through data, distribution, and fulfilment centers positions it as a dominant player.
  • Alternative Options: BorrowBox and Libraries Ireland offer free access to books and audiobooks, potentially reducing reliance on Amazon.

Strategic Considerations:

  • Customer Migration: Irish customers switching from UK Prime may face reduced benefits, leading some to remain loyal to the UK service.
  • Local Business Impact: The launch of an Irish site could divert traffic from local stores, though Amazon's support for SME exports provides economic benefits.

Long-Term Effects and Market Implications:

  • Market Dominance: Amazon's strong presence in Ireland is likely to intensify competition with local retailers.
  • Consumer Behavior: The shift to the Irish site may alter purchasing habits, but loyal UK Prime users may resist due to reduced features.
  • Economic Impact: While Amazon's investment creates jobs and supports exports, it could also undermine local brick-and-mortar stores.

Conclusion:

The launch of Amazon's Irish website offers significant savings and benefits for new customers but falls short in delivering the full suite of Prime services available in the UK. For casual users or those without strong ties to additional Prime features, the Irish subscription is a cost-effective choice. However, loyal UK Prime users may find little incentive to switch due to the loss of key benefits like Prime Reading and Kids+.